FUNDING TRANSPORTATION PROJECTS. Partners in Planning March 8, 2014

Transcription

1 FUNDING TRANSPORTATION PROJECTS Partners in Planning March 8, 2014

2 Overview Background what guides our decisions? Prioritization how do we decide which projects to build? Funding Sources how do we pay for our projects? The Future which projects will we build next?

3 BACKGROUND What guides our decisions?

4 More compact development (50 / 50 split) Complete communities More travel choices Direct transit links between destinations Support movement of goods and services Work within our funding constraints

5 Demographic Shifts Calgary s population is changing: Ageing of baby boomers 1333% increase in people 85+ over next 60 years Less growth in younger generations (workforce) Growth reliant on international immigration in 20 years Means changes in the way we live and travel

6 Emerging Growth Pressures Calgary has the largest per capita footprint in Canada Energy consumption is 56% of Calgary s footprint

7 Global Energy Demand Rates of supply growth out to 2050 could boost energy production by 50% Includes 20% savings from energy efficiencies Still leaves a gap of around 400 EJ/a the size of the whole energy industry in Shell February 2011

8 Economic Competitiveness To the extent that western Canadians get this [density supported by public transit] right we will be ahead of our international competitors; to the extent that we get it wrong, we will fall behind in the race to sustain economic prosperity and the quality of life to which it contributes. Canada West Foundation March 10, 2009

9 THE COST OF GROWTH Calgary s population will more than double in 60 years 2014 = 1.1 million people 2070 = 2.3 million people, or more Costs to build, operate and maintain new infrastructure Directly linked to the shape and size of the city

10 The Municipal Development Plan and Calgary Transportation Plan 2014 MDP IMPEMENTATION The Calgary Transportation Plan Based on Plan It Calgary Linked to Municipal Development Plan (MDP) Guides Transportation plans and services Defines transportation network

11 The Municipal Development Plan and Calgary Transportation Plan 2014 Dispersed Scenario (Business as Usual) Recommended Direction 1,010 sq. km. 250 sq. km. saved 760 sq. km.

12 The MDP and CTP 2014 Primary Transit Network Crowfoot Combination of LRT, BRT and Bus services University Sunridge Frequent, Fast, Reliable, Connected < 10 min. frequency, ~15 hours/day, 7 days/week MRU Anderson Shawnessy Chinook SE Hospital 12

13 The Municipal Development Plan and Calgary Transportation Plan 2014 Capital Cost Comparison NOTE: All forms of growth still incur new costs 33% less

14 The Municipal Development Plan and Calgary Transportation Plan 2014 Annual Operating Cost Comparison 14% less

15 The Municipal Development Plan and Calgary Transportation Plan 2014 Changes in How People Travel All purpose, all day trips - not only commuting trips

16 PRIORITIZATION How do we decide which projects to build?

17 Investment Policies (CTP Section 2) Linked to MDP Part 5 Framework for Growth and Change Key policy direction: Highest Priority: Primary Transit and activity centres / corridors Increase reliability and safety for goods movement Increase capacity of existing infrastructure before building new Account for operating & maintenance costs Pursue new funding sources

18 Mobility Hubs and Transit Corridors 40-50% Goods Movement and Traffic Growth 25-30% Transportation Network Optimization 5-10% Lifecycle and Asset Management 20-25% Total Funding Required = $4.5 billion / decade

19 FUNDING GAP 1,000 Federal Funding by Source Annual Cash Flow ($ millions) Provincial City - Developer Levies City 9% 11% 65% 15% $450 million / year (average) required GAP = $200 million / year $250 million / year (average) projected

20 Prioritization Criteria General Criteria Citizen concerns Achieving Council targets Transit Corridor Criteria Customer experience Link to land use Operational benefits Major Road Project Criteria Support for goods movement Capacity and safety

21 Scenario 1 Pro-Rated Target New Infrastructure Existing Infrastructure $4.5 billion needed $2.5 billion Mobility Hubs & Transit Corridors Goods Movement & Traffic Growth Transportation Network Optimization 21 Lifecycle & Asset Management

22 Scenario 2 Optimize & Maintain New Infrastructure Existing Infrastructure $4.5 billion needed Mobility Hubs & Transit Corridors Goods Movement & Traffic Growth Transportation Network Optimization Lifecycle & Asset Management

23 Achieving Our Goals 2020 S.D. / BPBC3 Target Pro-Rated Target Scenario Optimize & Maintain Scenario Scenarios Department Targets Increase use of walking, cycling and transit Transit priority on 100% of Primary Transit Network 80% of roads maintained at or above good condition Transit vehicle fleet age maintained at 2009 levels Number of bridge structure with load restrictions

24 Public Feedback Category Proportional Allocation of $2.5 billion Engaged Citizen Allocation of $2.5 billion Engaged Citizen Priority Scenarios Public Engagement Transportation Network Optimization 55% 71% 1 Lifecycle and Asset Management 55% 59% 2 Mobility Hubs and Transit Corridors 55% 45% 3 Goods Movement and Traffic Growth 55% 34% 4

25 FUNDING SOURCES How do we pay for our projects?

26 Where Our Funding Comes From Government Grants Fuel taxes Limited-term programs Civic Funding Property/business taxes New Green Line Fund Developer Levies Expected to grow Funding by Source 9% 15% 11% 65%

27 How do we close the gap? Council Notice of Motion NM : Conduct a workshop Identify options to fund and finance the Southeast Transitway Evaluate pros & cons Engage stakeholders along the corridor

28 Alternative Funding & Financing Report for Information Presented to Council January 31, 2014 Reviews Public-Private- Partnerships Not a substitute for new funding Identifies 27 potential funding tools

29 Funding Tools in Canada Revenue Tool Metrolinx / Toronto AMT / Montreal TransLink / Vancouver Transit Fare Increases Fuel Tax Parking Sales Tax Property Tax Road Pricing / Tolls Utility Levy Vehicle Registration Tax (shading = 100% dedication to transit development)

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31 Revenue Tool MTA / New York Virginia DoT Portland (TriMet) California (CTC) RATP / Paris Transport for London Transit Fares Corporate Income Tax Driver s License Tax Employer Payroll Tax Fuel Tax HOT Lanes Land Value Capture Road Pricing / Tolls Sales Tax Vehicle Registration Tax (shading = 100% dedication to transit development)

32 More than just revenue generation at stake Primary motivation: raise revenue to fund transportation infrastructure projects Don t reduce economic competitiveness e.g. income taxes, payroll taxes Improve a city s economic performance e.g. user-based charges Preferred funding tools would: maximize transportation benefits minimize taxation inefficiency

33 Risk Assessment Without new, stable sources of funding: diminished ability to maintain the system delayed construction of high-priority projects Consequences for citizens: reduced reliability of infrastructure and services increased travel times for people and goods increased greenhouse gas emissions reduced quality of life

34 Next Steps Funding Tools Conduct more detailed analysis of 27 options Look at revenue sharing options with Province Shortlist high-potential funding tools Support City Charter negotiations, as required Financing Options Continue applying Council s Public Private Partnership (P3) Policy

35 THE FUTURE Which projects will we build next?

36 Rapid Transit Corridors Centre Street Southeast Transitway Southwest Transitway 17 Avenue SE North Crosstown BRT South Crosstown BRT NW-HUB

37 Westbrook Transit Operations Centre Budget = $25 million Timeline: Key Benefits Safety monitoring Data collection Improved communications

38 Stoney Bus Garage Budget = $200+ million Timeline: Opens 2018 Key Benefits Reduce operating & maintenance costs Increase lifespan of buses Compressed natural gas (CNG) fueling

39 Chinook Transit Oriented Development Budget = $20 million Timeline: TBD Key Benefits Pedestrian safety and comfort Support development around LRT Reduce long-term costs

40 Centre City Mobility Program Budget = $44 million Timeline: Key Benefits Accommodate growth Increase travel choices Enhance property values & tax generation

41 Trans Canada Highway & Bowfort Road Budget = $70 million Timeline: Key Benefits Free flow traffic on Trans Canada Better walk/cycle across highway Accommodate development Interchange

42 Airport Trail Tunnel Budget = $294 million Timeline: Opens 2014 Key Benefits Serve 27,000 vehicles each day Alternate access to airport for cars & buses

43 Glenmore Trail & Ogden Road Interchange Budget = $102 million Timeline: Key Benefits Improve capacity for cars, buses and trucks Eliminate delays at CPR crossing

44 Macleod Trail & 162 Avenue S Interchange Budget = $55 million Timeline: Key Benefits Increase free flow between Anderson & Ring Road Improve access to communities & businesses

45 Search for: Investing in Mobility on QUESTIONS?